EU backs crypto tax-data sharing rules

Crypto firms in the EU will be required to report client assets for sharing with tax authorities. The requirement will take effect 20 days after the relevant publication in the Official Journal of the European Union, according to CoinDesk.

This followed the finance ministers of the bloc approving rules on information exchange regarding individuals’ crypto assets.

The initiative arose last year in an effort to block the use of foreign services and received unanimous backing from EU member states. It is being implemented under the eighth Directive on Administrative Cooperation (DAC8).

In May, media circulated the draft provision. The document showed authorities’ intent to bring under fiscal supervision a broad range of digital assets, including stablecoins, NFTs, DeFi tokens, and staking.

A dedicated commission is expected to compile a register of VASP by December 2025. The new rules will take effect on 1 January 2026.

The provisions complement the regulation on markets in crypto assets (MiCA) and the anti-money laundering rules within the framework of the transfer of funds regulation (TFR).

«The directive will enhance member states’ ability to identify and combat tax fraud and evasion of taxes. It requires all EU-based VASPs, regardless of size, to report transactions of clients residing in the EU», — according to a statement by the European Commission.

Earlier in June, the OECD published the crypto-asset reporting framework and amendments to the single standard for the exchange of tax information.